After several months of being trapped in a channel, Solana finally broke out and tapped $24.5 with a 15% gain in a week. It has encountered resistance and now negotiating for a more impulsive move or a retest.
The much-anticipated rally has finally come into play as SOL significantly flipped the long descending channel that suppressed bullish actions for ten months. This breakout just signaled a big incoming rally on the daily chart.
Although it still needs to overcome February’s resistance level to start a bull run at full speed. However, the party has just begun. The price is now testing the March resistance level.
Meanwhile, the $20 psychological support level that served as a controversial area of interest for the buyers and sellers in the past days has now held solidly after producing a rebound. However, the buyers won, and they pushed with a strong footprint.
SOL’s price will continue to surge if volume inflow increases by the day. A small drop in the volume may lead to shallow retracement on the channel before resuming bullish steadily.
A deep retracement below the psychological support level would most likely cause a bull trap and, at the same time, trigger a serious decline.
But looking at the current market behavior from a technical standpoint, SOL has initiated another swing high. The price has been up by 6% over the past hours.
Solana’s Key Level To Watch
As the crypto asset trades at resistance, the next area of interest for the bulls is $26.77, followed by the February resistance level of $27. From there, the higher levels to pay attention to lie at $30 and $33.5.
If the current holding resistance stops buy actions, it may retrace to the $22.3 support level for a rebound. If the price drops and exceeds $20, SOL could nosedive sharply to $16.1 and $15.1.
Key Resistance Levels: $26.77, $30, $33.5
Key Support Levels: $22.3, $20, $15.1
- Spot Price: $24.5
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: valedol/123RF // Image Effects by Colorcinch
